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Morning doji star pattern is a three candle reversal formation that comprises of the following candles:
Morning doji star pattern appears at the bottom of a down-trend. Its purpose is to turn the current down-trend around into the upwards direction. In terms of its structure the candle formation has to be as follows:
You must not place a ‘buy’ every time you see a morning doji star pattern. This is because this pattern appears quite regularly and more confirmation with a help of a few indicators (for example) is required in order to take the trade.
Below, we can see that the market was falling but the appearance of the morning doji star pattern had weakened the bears’ power. After its appearance, the morning doji star pattern turned the trend in the upwards direction. However, was it a stron reversal?
We can see that the morning doji star pattern had turned the trend around but this was short lived. After a few sessions, the trend continued to fall downwards. On this occasion, the pattern was weak, despite turning the trend around for a few sessions. The reason is that the white candle did not close more than half way into the first, black candle's real body, hence it has weakened the pattern.